BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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30 days
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60 days
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90 days
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365 days
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Detailed explanation-1: -If the interest or principal remains overdue for a period 90 days or three months and above the loan account is classified as a Non-Performing Asset (NPA).
Detailed explanation-2: -The banking sector follows an automated system for tagging accounts as NPAs, under which the accounts are tagged as NPAs on the day the account becomes overdue for more than 90 days. However, in many NBFCs, this classification is made after the end of 90 or 180 days.
Detailed explanation-3: -For the above category of banks, an account would be classified as Non Performing Asset if the : (i) Interest and/or installment of principal remain overdue for a period of more than 180 days in respect of a Term Loan.
Detailed explanation-4: -NPA as defined by the RBI, “if for a period of more than 90 days, the interest or installment amount is overdue then that loan account can be termed as a Non-Performing Asset.
Detailed explanation-5: -2004 the norm for classification of an asset as non performing has been reduced to 90 days from 180 days.